Som Distilleries shares surge 4% after Madhya Pradesh HC stays licence suspension

The stock of the company was trading 3.51 percent higher at Rs 118.52 on NSE at 15:16 pm.

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Shares of Som Distilleries and Breweries Limited surged more than 3 percent on July 2 after the company informed that the suspension of its licence was stayed by the Madhya Pradesh High Court on June 28.

The stock of the company was trading 3.51 percent higher at Rs 118.52 on NSE at 15:16 pm.

Following the stay order, the company said normal operations have resumed at the firm’s plant.

On July 2, Reuters reported that child labourers aged between 13 and 17 were found working during an inspection of a plant by the Madhya Pradesh government. The child labourers were made to fill and pack liquor bottles and were forced to work long hours, the news agency reported.

The report said that police are investigating the use of child labour at the distillery in Madhya Pradesh after the National Commission for Protection of Child Rights (NCPCR) said last month it had found 58 children working illegally at the factory.

The commission released photos of some with hands showing chemical burns and said some children were transported in school buses for factory work.

The report, which is not public but was seen by Reuters, says children were working 11-hour shifts starting at 8 am.

The Madhya Pradesh government temporarily suspended the Som distillery's manufacturing licences, but the company has challenged the decision, saying there has been no conclusive finding of wrongdoing.

After Som's challenge, a local court put the state's decision on hold and said it would next hear the case later this month.

Som and the Madhya Pradesh government did not respond to the news agency's requests for comment.

In a submission to the state government on June 18, also seen by Reuters, Som had said some children would visit the company to deliver food and medicines to their parents, and no worker was younger than 21.

Som is one of the smaller distilleries in India's thriving alcohol industry, where both foreign and domestic players operate. Its website describes it as an "internationally acclaimed brand" available in more than 20 markets including the United States, New Zealand and the United Kingdom.

With inputs from Reuters